B.C.’s Massey Tunnel replacement doubles in cost to estimated $8.5 billion

VANCOUVER – The projected cost of replacing the George Massey Tunnel in Metro Vancouver has ballooned to $8.5 billion, more than double the previous budget, the provincial transportation minter said Monday.

Mike Farnworth told a news conference that the increased cost comes reflects market conditions, inflation “and the realities of delivering a project of this size and complexity.”

Farnworth said the previous estimate of $4.15 billion for the eight-lane tunnel connecting Richmond and Delta under the Fraser River was made in 2021 and conditions have changed since then.

“There has been significant inflationary costs. In fact, it is a global phenomenon that we have seen through the disruption of supply chains, that we’ve seen post-COVID, that we’ve seen with global instability,” he said.

“All of those things have contributed to the significant increase, or to the increase, in cost of infrastructure projects, not just here in British Columbia and Canada, but in fact, globally.”

The revised costings come less than a week after B.C. signed a deal with the federal government in which Ottawa agreed to cover up to a third of the capital costs for the tunnel to a maximum of $3 billion.

The deal said Ottawa’s support could include low-cost financing in addition to direct financial support.

In June, the province terminated its deal with a design-build consortium it had selected to replace the aging tunnel, and the ministry now says procurement will be decided in 2027. Completion is expected in September 2031 rather than December of 2030.

The Transportation Ministry said the new estimate has been “validated by an independent third party.”

Farnworth called the tunnel “a nation-building project that is going to improve transportation to the ports and the movement of goods, not just in British Columbia, but in fact, Canadian products.” 

The increased price tag came with heavy criticism from the provincial Conservative opposition, pointing to “endless delays, cancelled contracts, and ballooning costs.”

“When the George Massey Tunnel replacement project was first announced as a bridge, the entire project was estimated to cost $3 billion, and now we’re being told that number might not even cover a third of the total costs,” Misty Van Popta, Conservative shadow minister for infrastructure, said in a statement before the new projected cost was announced.

“This is one of the most stunning displays of government incompetence I have ever seen, and it is inconceivable that David Eby and Mark Carney are trying to spin this as a win.”

This report by The Canadian Press was first published July 6, 2026.